Independent Legal Advice
Independent Legal Advice for Buy-to-Let & SPV Director's Guarantees
Buying an investment or holiday-let property through a limited company? Your buy-to-let lender will almost certainly ask each director to sign a personal guarantee, and to take independent legal advice first. We provide it by secure video call, with your certificate emailed the same working day.
Why do SPV buy-to-let mortgages need a personal guarantee?
Many landlords now buy rental and holiday-let property through a limited company, usually a special purpose vehicle (SPV) set up just to hold property. Because a company has limited liability, buy-to-let lenders protect themselves by asking the people behind it (the directors, and often the shareholders) to give a personal guarantee. That means if the company cannot keep up the mortgage, the lender can pursue you personally, even though the property is owned by the company. Nearly all limited-company buy-to-let, portfolio and holiday-let mortgages are offered on this basis.
Why is independent legal advice required?
A guarantee turns limited liability back into personal liability, so lenders (and the solicitors acting for them) want to be sure you understand that before you sign, and that you are signing freely. Independent legal advice (ILA) from an adviser who is separate from the lender and the company provides that assurance, and produces the certificate the lender needs to release funds. Our certificates are prepared to satisfy standard lender requirements, and if your lender has its own form we complete that instead. Just email info@ilahub.com or contact us.
The main risks, in plain English
Your adviser will talk through your own guarantee and mortgage offer, but the key points usually are:
- Your personal assets are on the line. If the company defaults and the property sells for less than the debt, the lender can pursue you personally for the shortfall, interest and costs.
- The company shield does not protect you. The whole point of the guarantee is to look past the SPV to you as an individual, so 'the company owns it' is not a defence.
- Joint and several liability is common. If several directors sign, the lender can usually claim the full amount from any one of you, not just a share.
- It can cover more than one loan. Portfolio and 'all monies' guarantees may extend to future borrowing by the same company, so your exposure can grow after you sign.
- Letting income can be variable. Lenders still expect the mortgage to be paid in quiet periods, and your guarantee is what stands behind it.
Who typically needs this advice?
Directors and shareholders of an SPV or trading company taking out a buy-to-let, holiday-let, portfolio or refurbishment mortgage. It applies to first-time company landlords and experienced portfolio investors alike, and where a company has more than one director each guarantor normally needs their own advice and certificate, and the fixed fee is per person. If your guarantee is for a business loan or a commercial lease rather than a property mortgage, see our personal guarantee and commercial lease guarantee pages.
How ILA Hub's process works
Everything is done remotely, from anywhere in the UK, with nothing to print or post. You book online, verify your ID beforehand and upload the mortgage offer and guarantee, then meet a legal adviser by secure video call, Monday to Friday, 9am to 7pm. Your signed certificate is emailed the same working day as your appointment, ready for your lender or their solicitors. Fees are fixed per person: Standard £150 with an appointment within 2–3 working days, Fast Track £250 from the next working day, or Priority Same-Day £350 for the earliest available slot, including same day. See our pricing, then book your appointment in a couple of minutes.
Frequently asked questions
Does every director have to give a personal guarantee on an SPV mortgage?
Usually the lender requires a guarantee from each director, and often from significant shareholders too. Each person who signs normally needs their own independent legal advice and their own certificate, so our fixed fee is per person, and we can arrange appointments back to back.
Is a limited-company buy-to-let guarantee different from a normal personal guarantee?
The legal effect is similar (you personally back the company's borrowing), but the context is a property mortgage rather than a business loan, and the guarantee often ties in with the mortgage conditions. Your adviser explains the specific document in front of you.
Will your certificate be accepted by my buy-to-let lender?
Our certificates are prepared to satisfy standard lender requirements and are relied on by borrowers completing with major UK lenders. If your lender uses its own certificate form, email it to info@ilahub.com when you book and your adviser will complete that instead.
How quickly can I get my certificate?
On every tier the certificate is emailed the same working day as your appointment. The fee only affects how soon the appointment is: Standard (£150) within 2–3 working days, Fast Track (£250) from the next working day, and Priority Same-Day (£350) at the earliest available time, including same day.
Ready to keep your completion on track?
Book your video appointment in minutes. Same-day fast track appointments available Monday to Friday.